Mainland China, Hong Kong, Macau free-trade plan still in motion: vice-minister Beijing reiterated its pledge to create a “single free-trade zone” incorporating mainland China, Hong Kong and Macau on Wednesday, as it seeks to deepen economic ties with the two special administrative regions (SARs) amid ongoing trade tensions with the US. The Ministry of Commerce would “explore and promote” the establishment of a unified free-trade area across the three distinct customs territories, Vice-Minister of Commerce Yan Dong said at the Belt and Road Summit in Hong Kong. It would also continue to support Hong Kong’s accession to the Regional Comprehensive Economic Partnership to expand its external economic and trade network, he said. “The Ministry of Commerce will support Hong Kong in consolidating and enhancing its status as an international financial, shipping and trade hub,” Yan said. “Hong Kong will play a bridging role in infrastructure connectivity, trade facilitation and financial integration, expanding trade and investment scale with partner countries.” The ministry would also support Hong Kong in aligning itself with construction projects, organising the city and mainland enterprises to engage with more partner countries, and guiding Hong Kong businesses to provide high-level professional services – such as legal services, commercial arbitration and financial insurance – for projects like outward investment and contracted engineering, he added. The Belt and Road Initiative, launched in 2013 by President Xi Jinping, had yielded fruitful results, with trade in goods between China and partner countries exceeding US$3 trillion and numerous landmark infrastructure projects built in these nations, Yan said. The ministry would continue to support the city in deepening its connectivity domestically and internationally, and further broadening the mainland’s openness to Hong Kong in sectors such as finance, construction and tourism, he added. Beijing floated the idea of building a free-trade zone involving the mainland, Hong Kong and Macau in 2021, aiming to better integrate the two SARs into the country’s overall development. Zhang Zhiwei, chief economist of Pinpoint Asset Management, said that if such a free-trade zone was established, the main benefit would be a reduction in tariffs on goods produced in Macau and Hong Kong when they entered the mainland. “Since Hong Kong is itself a free port, goods from the mainland shipped to Hong Kong are already tariff-free,” Zhang said. It would also depend on whether the free-trade zone covered only goods or also included trade in services, he said. “Hong Kong and Macau do not have strong manufacturing sectors, and the export volume of locally produced goods is relatively low, apart from re-exports,” Zhang said. “Therefore, trade in services might be more advantageous for them.” Xu Tianchen, senior economist at the Economist Intelligence Unit, said China was using the protectionist policies of US President Donald Trump as a strategic window to explore trade liberalisation and cooperation. Trump began a heated tariff war against most American trading partners earlier this year. China-US tensions escalated dramatically in April, before stabilising after three rounds of midyear trade negotiations. Lau Siu-kai, a consultant with the semi-official Chinese Association of Hong Kong and Macau Studies think tank, said the establishment of the single free-trade zone would mean the removal of tariffs for goods produced in Hong Kong and Macau when entering the mainland. The academic suggested that Hong Kong would benefit from the arrangement if more manufacturers of hi-tech goods, such as chips and electronics, chose to set up production facilities in the city. Gary Ng Cheuk-yan, a senior economist at Natixis Corporate and Investment Bank, said the plan to set up the free-trade zone was to further integrate various regions within China for higher competitiveness and efficiency in a bid to make the country more attractive for trade and investment. But he warned that while the city might see more collaboration with the mainland and Macau on technology, finance and mutual recognition of professional qualifications, some sectors and jobs in the city could face the pressure of replacement by their mainland counterparts. https://www.scmp.com/economy/china-economy/article/3325051/mainland-china-hong-kong-macau-free-trade-plan-still-motion-vice-minister (ICE HONG KONG)

Fonte notizia: South China Morning Post